Come Gather ‘Round Pipelines – Building Out the Permian Crude Oil Gathering System

The next six months look set to be quite turbulent for Permian Basin producers. Crude production is now over 1.5 MMb/d and supplies trying to get to market are facing congested pipelines leading to price discounts. New capacity is due online in June in the shape of the 300 Mb/d Magellan/Occidental joint venture BridgeTex pipeline. But many Permian producers are also awaiting the build out of gathering systems to deliver their crude to regional hubs in Crane, Midland and Colorado City where the major takeaway pipelines originate. At least a dozen of these systems are currently being developed. Today we start a new series on the build out of Permian gathering infrastructure.

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